SPCS

SOCIETY FOR PROMOTION OF COMMUNITY STANDARDS INC.

More jail for Capital + Merchant Finance pair

by Leave a Comment

Jailed Capital + Merchant Finance directors Wayne Leslie Douglas and Neal Medhurst Nicholls have had their record-setting prison sentences increased after pleading guilty to misleading investors.

They appeared before Justice Geoff Venning for sentencing in Auckland High Court today having, in February, pleaded guilty to five charges between them of signing prospectuses that contained false statements between 2006 and December 2007.

The misleading statements included information about Capital + Merchant’s liquidity and cashflow, management of loans and related-party lending.

Douglas was sentenced to eight months’ imprisonment and Nicholls was sentenced to 12 months on the charges, brought by the Financial Markets Authority.

The jail time is on top of the seven and a half year jail terms they are currently serving for fraud after a prosecution by the Serous Fraud Office [SFO] last year.

See full story here by Georgina Bond:

Published Friday June 28, 2013

http://www.nbr.co.nz/article/more-jail-capital-merchant-finance-pair-gb-142172

See earlier story published 15/02/13

http://www.nbr.co.nz/article/prison-garbed-duo-admit-misleading-investors-gb-135950

Michael Swann’s parole hearing delayed due to threats against Parole Board

by Leave a Comment

Convicted fraudster Michael Swann, who defrauded the Otago District Health Board of $16,902,000 over six years while he worked there as an IT specialist, is up for parole after only serving four years of a nine-and-a-half year prison sentence imposed March 2009. He spent almost $11.6 million of the stolen money on boats, flash cars and properties – buying some with suitcases of cash.

In an “extraordinary turn of events” his parole hearing has had to be delayed by the Board because of a threat it received from Swann’s unnamed main parole sponsor, a threat issued in an “extraordinary and inappropriate” letter, according to the Boad.

Board convenor Judge Michael Crosbie said the supporter, who was present for Swann’s parole hearing last Tuesday [14 May], had written to the board since the hearing.

The letter contained “a threat to take and fund judicial review proceedings if Mr Swann does not receive an outcome favourable to him”.

Judge Crosbie said it would be wrong to ignore the letter.

“It is both extraordinary and inappropriate for a prisoner or supporter to write a letter … pending a decision,” he said.

Judge Crosbie said Swann had perpetrated a fraud involving “a serious and cynical breach of trust”.

However, the supporter’s letter had objected to the board conducting any analysis of Swann’s risk.

For full story go to:

Parole Delayed for Swann. 8.45 PM, Monday, May 20, 2013

By Matthew Backhouse

http://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=10884944

Threatening letter delays parole hearing

Story by Wilma McCorkindale.

http://www.stuff.co.nz/national/crime/8693980/Threatening-letter-delays-parole-hearing

Fairfax NZ News

Hohepa Morehu-Barlow: Kiwi fraudster jailed for defrauding Queensland Government of A$16 (NZ$20M)

by Leave a Comment

A flamboyant Kiwi fraudster who defrauded the Queensland Government of A$16 million ($20 million) has been sentenced to 14 years in an Australian prison. Former Brisbane socialite Hohepa Morehu-Barlow, who grew up in Thames, has admitted systematically stealing the money while working for Queensland Health.

Morehu-Barlow, who was also known as Joel Barlow, pleaded guilty to eight charges relating to fraud and drug offences when he appeared in the Brisbane District Court today.

His offending, the largest ever fraud against the state government, funded an extravagant lifestyle that made Morehu-Barlow one of Brisbane’s fashionable high flyers.

For more see:

http://www.odt.co.nz/news/world/australia/250045/kiwi-pleads-guilty-20m-fraud

White collar crime: Heavy sentences imposed on offenders convicted of premeditated fraud

by Leave a Comment

The offending of Jacqui Bradley, the former financial adviser jailed today for seven years and five months on fraud charges, was premeditated and left many elderly investors financially and emotionally ruined, the Auckland District Court heard.

[This fraud case has some similarities to the 2009 conviction of Michael Swann who was given a 9.5 year jail sentence relating to a huge fraud against the Otago District Health Board. See https://www.spcs.org.nz/tag/michael-swann/ ].

A jury last month found Bradley, aged 61, guilty of 75 charges of fraud after a five-week trial. Bradley ran the failed finance company B’On Financial Services with her late husband Mike until it collapsed in December 2009 owing 28 investors $15.5 million.

Judge Christopher Field, in sentencing today, said the extent of loss, harm and damage was “very significant indeed”…..

It’s the third prosecution involving an affinity fraud by financial advisers that the SFO has completed in the past three months with offending across all three cases totalling almost $21m.

In other recent white collar crime cases those found guilty received a range of sentences in line with that handed out to Jacqui Bradley today.

Former Capital + Merchant directors Wayne Douglas and Neal Nicholls were give 7 and a half years jail in July on various fraud counts involving about $28m of transactions after Justice Edwin Wylie said they were motivate by greed and self-interest. DataSouth director Gavin Bennett got 8 years jail in May for defrauding South Canterbury Finance while Bridgecorp director Rod Petricevic got almost 7 years in April for misleading investors and spending company money on a luxury yacht.

Former ASB bank employee Stephen Velsalko got six years jail time in a 2010 case involving $17m stolen from his employer while in 2009 Michael Swann was given 9.5 years relating to a huge fraud against the Otago District Health Board.

For more see: Bradley offending premeditated. Story by Nick Kraus

http://www.stuff.co.nz/business/money/7837957/Bradley-offending-premeditated

Further reading:

See: https://www.spcs.org.nz/2010/michael-swann-checketts-mckay-fraud-and-otago-dhbs-missing-6-million-report/

https://www.spcs.org.nz/2010/michael-swann-computer-south-ltd-and-checketts-mckay-law/